Rapaport News




Advanced search
Latest Articles
Rough Markets
Polished Markets

LVMH Revenue Dives as Tourism Dries Up

Jewelry brands such as Bulgari are highly reliant on travel retail.
Jul 28, 2020 8:34 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT...  LVMH, which owns Bulgari and Chaumet, saw sales of watches and jewelry slump in the first half of 2020 as the coronavirus reduced tourist spending and affected demand from wholesale customers.

The category endured the worst performance of the luxury group’s major product types, with revenues falling 38% year on year to EUR 1.32 billion ($1.55 billion), LVMH reported Monday. The division incurred an operating loss of EUR 17 million (around $20 million), compared with a profit of EUR 357 million ($419 million) a year earlier.

Watches and jewelry, and especially Bulgari, are highly exposed to the travel-retail business, LVMH chief financial officer Jean Jacques Guiony explained in an earnings call, transcribed by Seeking Alpha. The pandemic has ravaged tourist spending, especially in Europe and in Asian hubs such as Hong Kong, he noted.

“So, this business suffers particularly from the current situation,” Guiony said.

Destocking by third-party retailers that carry LVMH brands further impacted sales, the company added. A rebound in China in the second quarter helped limit the losses.

Group revenue fell 27% to EUR 18.39 billion ($21.57 billion) for the first half, with sales down heavily in the US and Europe in the second quarter. Net profit plummeted 84% to EUR 522 million ($612 million) as the sales slump outpaced the company’s reduction in costs.

Image: A Bulgari store in the Ginza shopping district of Tokyo, Japan. (Shutterstock)
Tags: asia, Bulgari, Chaumet, China, Europe, Hong Kong, Jean Jacques Guiony, Jewelry, LVMH, Rapaport News
Similar Articles
Tiffany Beijing storeLVMH Replaces Tiffany CEO as Deal Closes
Jan 07, 2021
LVMH has shaken up Tiffany & Co.’s senior management after...
US Online Holiday Jewelry Sales Jump
Titan Revenue Buoyed by Wedding-Jewelry Sales
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us